Bausch Health secures intent for acne treatment coverage

Published 09/04/2025, 13:22
Bausch Health secures intent for acne treatment coverage

LAVAL, QC - Bausch Health Companies Inc. (NYSE:BHC)(TSX:BHC), a global pharmaceutical company with a market capitalization of $1.78 billion and impressive revenue growth of 9.91% over the last twelve months, announced today that it has reached a preliminary agreement with the pan-Canadian Pharmaceutical Alliance (pCPA) regarding coverage of its acne treatment, PrCABTREOTM, by Canadian public drug plans. According to InvestingPro data, the company maintains a robust gross profit margin of 71.1%, highlighting its operational efficiency in the pharmaceutical sector. This agreement paves the way for individual listing agreements that would allow the treatment to be covered across the nation's government drug programs.

PrCABTREOTM, a triple-combination topical gel, is designed to treat acne vulgaris in patients aged 12 and older. It combines clindamycin phosphate, adapalene, and benzoyl peroxide, which work together to provide an effective solution for acne through multiple mechanisms of action. The product has received Health Canada's approval as the only treatment of its kind.

Clinical trials have shown that CABTREO achieves approximately a 50% treatment success rate and reduces both inflammatory and non-inflammatory acne lesions by over 70% after 12 weeks of use. This development comes at a crucial time for Bausch Health, as InvestingPro analysis indicates the stock has recently experienced significant pressure, though analysts project improved profitability for the coming year. For detailed analysis and additional insights, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers. While the treatment is generally well-tolerated, it may cause mild to moderate skin irritation at the application site. It is not recommended for individuals allergic to its ingredients, those with certain gastrointestinal conditions, or pregnant women.

The agreement with pCPA signifies progress towards making CABTREO accessible through public drug plans, which is a critical step in addressing the needs of the nearly 5.6 million Canadians affected by acne vulgaris. Acne not only impacts physical appearance but can also lead to emotional distress and permanent scarring.

Bausch Health, Canada Inc., a subsidiary of Bausch Health Companies Inc., has a strong presence in the prescription dermatology market in Canada. CABTREO is the latest addition to its portfolio, which includes treatments for various skin conditions produced at its facility in Laval, Quebec.

This news release contains forward-looking statements that are subject to risks and uncertainties, and actual results may differ from those projected. The company does not assume any obligation to update these statements for future events or changes in circumstances. For investors seeking deeper insights into Bausch Health's financial health and growth prospects, InvestingPro offers exclusive access to over 10 additional ProTips and comprehensive financial metrics that can help inform investment decisions.

The information in this article is based on a press release statement from Bausch Health Companies Inc.

In other recent news, Bausch Health Companies Inc. has been actively managing its financial strategies and debt obligations. RBC Capital Markets has adjusted its financial outlook on Bausch Health, lowering the price target to $8.50 while maintaining a Sector Perform rating. Analysts project the company's first-quarter revenue for 2025 to be approximately $2.24 billion, slightly below the consensus estimate. Additionally, Bausch Health has announced an upsized senior notes offering of $4.4 billion, with proceeds aimed at refinancing existing debt and covering related expenses.

The company's refinancing plans include issuing new senior secured notes and securing a new term loan facility. S&P Global Ratings recently upgraded Bausch Health's issuer credit rating to 'B-' from 'CCC+', reflecting the company's efforts to refinance $6.87 billion of debt due between 2025 and 2028. This upgrade alleviates immediate refinancing risks and highlights the company's recent strong operating performance, including seven consecutive quarters of revenue growth.

Furthermore, Raymond James has maintained a Market Perform rating for Bausch Health, noting the company's strategy to manage high-interest debt and potentially separate its subsidiary, Bausch + Lomb Corporation. Analysts are closely monitoring Bausch Health's financial maneuvers, including its focus on debt management and strategic plans for its key products like Xifaxan. The company's ongoing litigation and potential impacts from newly announced tariffs remain areas of interest for investors.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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